Regulation changes welcomed by FSA

Published on 18 Jun 2010 under category: legal

Plans to reform the UK's regulatory framework have been welcomed by the head of the Financial Services Authority (FSA).

Lord Turner, the chairman of the City watchdog, said that the economic downturn had proved the need for improvements in financial regulation.

He praised the work of FSA chief executive Hector Sants during the financial crisis and announced that Mr Sants would continue in his role as the authority is reformed.

The FSA was established by the previous administration, in a move that took regulatory powers away from the Bank of England.

George Osborne, the new chancellor, said before the election that he would return those powers, should his party be voted in.

Lord Turner commented: "The crisis demonstrated the need for new regulatory approaches and more intense supervision, and the FSA has already implemented major change.

"But it also demonstrated the need to bridge the gap between macro-prudential policy and the supervision of individual firms. The chancellor's proposals for prudential regulation will enable us to do that, while building on the major changes we have made over the last few years."